New Delhi, March 8 (IANS) Government revenue will be under pressure in the current fiscal year with a senior finance ministry official on Friday suggesting that there could be a further fall in GST revenue while the direct tax numbers may just be about near the revised target.
But the official also said there would be some savings on capital expenditure side that could help bridge the gap. He, however, did not give the details on the quantum of savings and also didn’t clarify if these savings would come from a cut in the capital expenditure.
Some of the revenue expenditures such as interest payment obligations and subsidy have already been rolled over to the next fiscal to keep fiscal deficit under check in view of falling tax revenues.
“We will probably do direct taxes as per revised estimates, but on indirect taxes, there might be some shortfall further in the revised estimates,” said Subhash Chandra Garg, Secretary, Department of Economic Affairs, on the sidelines of an venture capital event.
“But the fiscal deficit figure of 3.4 per cent would be met as there would be some savings on the expenditure sides as well,” Garg said.
The direct tax target was revised upwards to Rs 12 lakh crore for 2018-19 fiscal while for GST, the target was further lowered for the current fiscal.
The government had budgeted to collect over Rs 7.43 lakh crore from Goods and Services Tax (GST) in the current fiscal ending March. However, in the revised estimates, the revenue mop-up has been pegged at over Rs 6.43 lakh crore.